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Hi, my name is Brett Kearney and I am a research analyst at Gabelli Funds. Today, I am going to be speaking with you about Allied Motion Technologies, and the various demand impacts across the company’s product offering in the current environment.
Allied Motion Technologies has 9.7 million shares outstanding. The stock trades around $37. $360 million market cap. $116 million of net debt, for a $476 million total enterprise value.
The company is a leading provider of integrated motion control solutions, including electric motors, drives, gearing, and encoders used in product applications across the industrial, medical, vehicle, and defense markets. We have shown here some of the company’s solutions offerings, including motors and drives used in medical pumps for kidney dialysis and respirator machines, integrated motion control solutions for factory robotics and automation equipment, as well as power steering solutions for agricultural and recreational vehicles.
In the near-term, Allied Motion is benefitting from very strong demand in the medical market for its products used in ventilators and infusion pumps for lung cleansing and fluid removal. The company has been able to secure some new customer wins during this time, which we expect to translate to further new business with these customers in coming years.
Allied Motion is also benefitting in the near-term from greater demand for outdoor activities, where consumers can take a break or vacation in a safe, socially distanced environment. The company supplies power steering equipment for four-wheelers as well as RVs.
Lastly, we expect Allied Motion to be a long-term winner from the re-shoring of supply chains and manufacturing to North America and the adoption of greater levels of factory automation and robotics.
We look forward to keeping you updated on the company’s progress in coming months. Thank you for tuning in, and have a great day!
